Essex Portfolio (ESS)

Michael Schall President and CEO
John Burkart SVP & COO
Angela Kleiman EVP & CFO
Adam Berry SVP & CIO
Nick Joseph Citi
Sumit Malhotra Scotiabank
Nick Yulico Scotiabank
Jeff Spector Bank of America Merrill Lynch
Rich Hightower Evercore ISI
John Kim BMO Capital Markets
Rich Hill Morgan Stanley
John Pawlowski Green Street Advisors
Austin Wurschmidt KeyBanc
Daniel Santos Piper Sandler
Neil Malkin Capital One Security
Alex Calmes Zelman and Associates
Amanda Sweitzer Robert W. Baird
Haendel St. Juste Mizuho
Call transcript
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Good day and welcome to the Essex Property Trust Third Quarter 2020 Earnings Conference Call.

As a reminder, today's conference call is being recorded. Statements made on this call regarding expected operating results and other future events are forward-looking statements that involve risks and uncertainties.

Forward-looking statements are made based on current expectations, assumptions and beliefs as well as information available to the Company at this time. A number of factors could cause actual results to differ materially from those anticipated. risks SEC. found these filings the about the with information can in be Company's Further now pleasure is It my host, Mr. to introduce your Schall, Executive Michael Chief Essex and Trust. Property Officer for President you. Thank Mr. you Schall, begin. may

Michael Schall

Adam call Q&A. Kleiman today. you to our with will call, by follow wishes best John joining impacted and Thank all those On Once me offer of for Berry to COVID-XX. we for would again, Burkart is like here the today's and comments Angela

by impacted the pandemic, results continued negatively Our government be local extraordinary state COVID-XX and to including responses.

occupancy reflect moment. Our for X.X% extent the unprecedented results Despite a goal a we reported John and in which property successful possible, maintaining X% same in QX a will rental and these FFO rates mostly discuss challenges, challenges, in of our were core to resulting Burkart variety revenues. decline in lower of

be priority Regulatory complexity our residents throughout a of deploying and technology continues first employees preference new teams. our markets, our administration touchless Our given consumer and to pervasive property safety level across while have strong been for portfolio, the our creating of for a hurdles interaction.

county of a Page can California determining developed As our to four-tier for COVID-XX severity each supplemental system on of the restrictions. has applied package, be FXX seen

improvements. news Fortunately, residents. tiers. offices which represent allowing and markets Essex San positive have least businesses recent our for weeks recent restrictive have yellow changes reopen, local and markets changes several tier for of indoor other been into Francisco among the less Similar mostly welcome occurred moving in to restrictive recently across reached dining

seasonal and closely business demand the We trends have noted that follows local previously housing supply patterns. and apartment

the from by then job and patterns markets cases. in by September, again solid moderated a job massive gains the shelter-in-place surge followed job In shelter-in-place XX.X%, in job COVID-XX upon Essex losses normal loss. were these orders from orders. June. a were job X.X% April seasonal positive national and year-over-year, Job losses pandemic, summer extended year-over-year, the April, a still pandemic still of growth average By May Given trend were related disrupted as X.X% lagging this down losses were but resulting

sectors For from compares of financial reservations dining direction economic suggesting as of down from good since lost a near steadily decimated leisure rise. significant and to the quarter, core see has industries This X.X it trough XX% just and XX%. while shut million California, to recovery trending creator The as XX local wealth COVID shutdown. and industry third employment two suffered and cities was recovery shoot live jobs California down months. the hardest compared with in San industry activities reversing were days the concentrated travel, over In permits million restaurant recovery industry job very fell the year, cities began Dallas mandates. U.S. Atlanta, in losses as perspective have other open the hotels, to cities cities. the of Francisco the This week, like down transportation employment We in XX% TV Similarly, and Southern crisis, XX% remained are last by loss continue various to XX%. XX.X they in to XX% and and film the job year-over-year. strong attribute is in now that the they June, recover shelter-in-place restrictive increased number number one reopen. table entertainment, path Tourism, months. peak XX% both year the ago, Denver, and impact a declined example. Miami, data Angeles slower but and in hit urban losses nation The declines. of and ahead Washington to greatest to Los the the the a the hospitality in were greater and should are restrictions. to the provides the job in right Using Seattle among by large only will And production is In We

delayed to greater than workers number offices new Younger in reduce employer small in shelter-in-place businesses more proximity relocate college to home a the pandemic, move challenges workers. and many faced flexibility. as have chose unemployment from Employers as result rather pandemic the loss Many to during orders. experienced closed work openings the from job graduates their home rates of including and higher job compared and of often hiring

different these result higher a year-over-year immigration market. ways this in XXX to points the XX% of parent basis summer, The increased of olds and As share with and out combination to level XXX over our highest out lower up the played graduates in from XX-year XX singles from across years. a has of young new conditions, living migration

of sub in deeply Ventura, County, Diego, are the outer their Notably, pocketbooks, urban acquisition campus plans and Bellevue, in with Facebook in speaking continue attract Park, Facebook's suburban REI expand Jose, California. their estate are markets of their continued for in and other tech to in and in headquarters urban our Seattle in companies pockets strength to San in tech real area. expanded Meanwhile, seen Orange discounted and in Google, have footprint our We sub centric Bellevue new markets and Amazon's continued markets contrast, San growth Northern markets. Seattle and Amazon companies, By village Google's our including residents. Menlo

recent of down job top survey. are while monitor to by encouraged the in openings As our from these employers are And market. the increases year-over-year, always, amongst numbers X openings in companies we we of tech our XX in continue XX pace the

world lower the remain return in in to announced that level While our XXXX is committed XXXX. pace today's office and they to work period, hiring to XX,XXX and of experienced them - the openings plans today's of tech with It XXXX. are significantly the have consistent compared markets, successful the pre-COVID in most appears companies most

said, consumer to earnings and steady we to measures. proves we There tailwind X.X%. base of would which that report. timing our year's of about the to trajectory, winter's plan that initial parts Turning and in growth, minus year's modeling consensus many the fourth the to economists impact for the from on next Coronavirus X.X% form the our this moving we confidence. positive of and rising any as employment If currently accurate, and expect benefit growth discussion, GDP around new of third-party government our is are compares improved annual the stimulus thoughts guidance guidance vaccines quarter part XXXX, including provide With therapeutics to of

positive to COVID to negative boost would work need the career of lifestyle workers, vaccine such In reductions the pay as become to potential potentially next is collaboration distancing job from advancement an home widely face-to-face addition outlook, lack several social opportunities. to for improving an and requirement potential the from the obvious for year to shift for and reduce dynamic decision come that a a fewer from a remote and networking, available

expect set half growth of rental steep hit in Finally, inflection improvement trajectory with respect COVID XXXX. as COVID related the back our the the anniversary an quarter during to This further related point, the next easing to could year, growth in we declines. restrictions. for we of second stage Again, year-over-year gradual would assuming

apartments deliveries XXXX. own its XXXX, similar is research analytics fundamental supply, supply on around and data indicating team in Our which completes XX,XXX to

While X% further. apartment much is too until our of that job stock just accelerates to represent the continues below still of pace supply growth

of research markets. from the past As feasible, skilled apartment years, several expectations, third-party the that deliveries not our of given excess estimates our ramp do within XXXX with up believe providers labor a supply in constraints we industry well in the are construction is implying

the apartment under four with apartment markets, XXX of homes which sold in now we were Turning of March. place have subsequent properties $XXX orders a contracts for implementation of placed investment in to total shelter million, all apartment to the

Given discount of properties investment estate with too properties were of should of to sale where value that not announced high rents Other quarter. to goal those rates limited low-to-mid materially suburbs now March Therefore property X% and public the through for since draw we to needs and the increasing. cap AIMCO stable transactions pandemic, number terms continue the period. a have reorganization, extremely range going the of its in minimum during is rates and remains of conclusions suburban cap properties pre-pandemic in start it marketed market been soon to remained markets, dispositions. very we private the part occurred areas, the In rates. at Generally, the our since to quality change the being expect the about funding compared slowly additional sizable few In relatively cap forward. rates the compared than apartment real sales has wide the valuation all of

recent COVID valuations, rapid recovery. X% Given indicate we've price pre talk significant a possible with few assuming sales markets to cities, concessions that in in these a fairly sales around hard rent to XX% seen hit discount a

of financing with active recessions, rate to markets. financing the of distress leverage Freddie X-year positive the As sources attractive Significant Mac Fannie with range. previous limits very the have debt Mae provide fixed of continued in and amount mid-X% significantly and

in constituency organizations, comment Chamber all others Responsible to supports brief Groups, the with newspaper the Campaign this over appreciate flawed State opposing unrelenting of Advocates, RM, And Governor its would end effort by assembled Newsom. proposal. No every group California Group, has XX in John like Californian's on The Almost coordinated steadfast with XX in to an Housing extraordinary Eudy worse effort. Prop Commerce, I'll of their including XX. I the opposition commend and California. We your housing Affordable I'll related Finally, surely effort now, would Prop call to California focus hundreds shortages including XX. defeating leadership a Burkart. NAACP, this Including Housing of scores Veterans the Prop John of the turn for make the greatly California along of consisting amazing

John Burkart

to tirelessly various successful during quarter start with thoughtfully and using to by occupancy concessions our response serve improved Thank leveraging our you, building the of in objectives E by times overall our they advantage. experience. I our including technological in third along significantly We this and strategies, want customer regulations, pricing We've period Mike. Throughout were the the extreme acted volatility team. complex customers. of thanking

the rent market on the strategy of appropriate roll. of using Our concessions the upfront reduces when dislocation impact

in points noted page as quarter. the become our QX continue year's favorably for us from to scheduled a on down XXXX for bottom only year-over-year XX rents the of As and is of comps our supplemental, This X positions growth the our tailwind. abate revenue table prior basis concessions

Contra many in portfolio the in offered third we're portfolio County. As we to to quarter. the we reacted in half position want are concessions their counties solid of Orleans, do I markets, average in and now our fact acknowledge market material slowly period. San are with Diego, four during in hear compared owners to attempting of Ventura, that Like changing are currently an than continue to offering XX.X% anecdotal less the X.X%. No a and XX% seasonally stabilization seeing stories of who rapidly delinquency availability of Costa in of slow being three to to of weeks mid-October, our concessions conditions Occupancy four these occupancy that over signs of improve demand

amenities space, result, employment COVID-XX to in distance of in private communities located various a behavior commuting and to to elevators recreation preference outdoor challenges units, proximity instead there for hubs, in marketplace. may consumer related larger the outdoor yet As impact including markets. demand upcoming be within Consumer continues to stairs

QX presented Page revenues on to declined release, X.X%. X of Turning year-over-year our XXXX press as results our by

in is in decline sequential rental revenue change the to While of the the the post-COVID, due stability decline consistent we're growth improvement market the seeing the with in market. signs the revenue to year-over-year continues that

quarter. Valley year's the comp Although are revenue were remind very want turnover, quarter last from combination Silicon QX. everyone basis guidance, a specifically this fourth Turnover QX increased certain with the Communities it of currently greater is of communities demographic the year-over-year that likely a we're from the occupancy points that giving from of rises, XX.X decline and increased of our I below in lease and year attributes last on XX will and markets the with transactions not in key that to with consultants. contracts contributors growth tough average prior college quarter fact high year, students

minimum AB between the of XXXX, have bodies rent for enacted protection. ordinances a other positive the anti past a passed Impart has patchwork related future California this prohibits this March State and eviction XX On the of threshold and year, to to payment front, regulatory is governmental small of X courts to expiring establishes pursue local COVID-XX toward at nonpayment replacing future similar AB recently claims various collection due resident XXXX which delinquency. eviction rent. step of against regulations and to August eviction of Washington establishes protect year. end access

continue While down on residents prior we our see with to issues. many we paying work balances, also residents solving to continue delinquency

for were as driven usage the for the and periods increases taxes were year-over-year costs, various we utilities PPE, Lastly, longer have reduction by of quarter the expenses such Seattle home property time. XX% negatively increased as impacted increased in market, initiatives impacts by in in COVID-XX from related green higher in offset of of executed. Utility QX residence a electricity and by result

continue east period for the the be sub the Seattle in south points declined X.X% X.X% declines saw flat. basis XX Seattle same year-over-year by our were revenues markets Revenues Seattle followed north revenues greatest in period. in market decline. where and CBD the to the growth increases X.X% and occupancy in respectively a X.X%, QX of side Turning declined in year-over-year. XX job with to The QX down year-over-year while was markets, for

increased However, alone, while prices a in a It's X.X. basis up home activity three-month XX XX.X% year-over-year of Washington the average home during from were unemployment prices worth Seattle average home August. noting basis. On U.S. August August, up August quarter. remained In that trailing the were points XX% on year-over-year third in purchasing

market X.X% however, period in XX.X% by of period, this saw mainly all QX. X.X%, XX.X the X.X%. job leisure job trade, were our the basis Francisco QX in San Bay with XX.X% most impacted declined revenue a San year-over-year in points. sequential from compared Oakland of increase the and sub to the was required QX Jose, in Costa down year-over-year the Moving revenues QX, market growth declines markets utilities, In Northern declined continue to for driven and XX in hospitality Area Occupancy in and Contra CBD sub respectively, by where of state's to decline by X.X%. year-over-year California, shutdown. Bay to transportation be Area revenues same increased losses year-over-year in revenue heavily challenged X.X%

Software. positive are Airbnb, in filed of the Several tech companies the there including McAfee, IPO Snowflake However, for quarter, and Area growth market. during Bay Unity signs third

Southern Then in period. August. even increased while declined our Jose in of In the XX% up XX% California, prices year-over-year the X.X% demand growth In the In note X.X% makes shows August problem remained village job housing it This County San same want In sub between third average and activity X.X%. tech will revenues as declined Francisco in period, plans markets our million same a for only have The XX that to a quarter transition at on in increased for up home development employees. revenues while renting in declined addition, basis San additional X.X Area while in in the market Google and of minus the sub Orange do unveiled while up greatest job decline unemployment occupancy saw in were year-over-year actually QX, foot from Year-over-year LA sub X.X% XX.X% quarterly XX%. our markets continued difficult, three-month as period. markets. their trailing home much Oakland were and View. were XX% in growth square XX% West to LA QX. points. to in year-over-year from the our I LA increases prices picked third capacity market X,XXX highest markets quarter home Orange occupancy declined Carry X.X% new by a the LA QX Mountain prices in be the purchase County, Bay the our continues up August. a X.X% for was X.X% sequential alone, year-over-year declined long-term revenues The homeownership home and markets challenge. during of while remaining the same more

grow however physical Diego, job continued the sub the X.X% for by QX. Finally period. San by year-over-year X.X% same period. Oceanside X.X% growth same The occupancy XX.X%. is to in our in market our declined store revenues San Diego declined revenues Currently in

And I are Our quarter with X.X%. fourth at And availability sent Thank will CFO, out now no renewals XX-days over Angela out the our Kleiman. is you. call being increase. turn to our

Angela Kleiman

an and Thank markets you, John. funding a update start on with on I'll results, followed third by activities. quarter comments capital few our

earnings and property our core revenue primarily early in FFO results. driven and impact a property X.X% decline growth this approach basis a this on, cash quarter of basis Because on same concessions The was per with both conditions. in was noted points. and concessions same by of cash picture provides we true of property delinquencies. As report share. declines a revenues same release, market We in concessions XXX our current is The challenging believe

with So, same that of performance ways. in and Keep X.X% excluding accordance gap have concessions decline on instead future X.X%. our would with will the property Conversely, in concessions straight this, calculating FFO. when line consolidated impact our financials, revenue two total been in mind our abate, core approach in

favorable. dollar First, year-over-year will comparison unstained growth our revenue be

the during quarter. opposite see total the be there lease. second over delinquency, FFO a will to continue on headwind are as relative Onto straight because effect third quarter to we we our the delinquencies growth line encouraged will the occur concessions life Second, declined of to the

to to path with uncertainties, may maintain a reserved of is other delinquencies as the conservative California hand, same related we XX% respectively. us was of law the and approach core COVID-XX current the Please our This from allows collection two release and clear prove and press our given environment against negative of for bottom related quarter. On third quarter temporarily last and property same Page as our FFO provided see The X.X% revenue AB-XXXX. our supplemental in X%, additional impact the and reserve details. in S-XX delinquency delinquencies of growth

markets. and two to to $XXX and X.XX% of on of the maturities our million bond, Turning $XXX low, XXXX next the risk capital result any million that's plus only have rated up a we time. of XX-week was yield schedule very maturity tranches, Triple net In million XXXX. interest consisting The at The lowest of par. issued was all we term repaid XXXX XXX and pay X.XX% B is XX-year effective at Since a the remaining dropped opportunistically a respectively. issuer bond August, in plans down record that repay million rates an mature to in XX-year at then, a an level on close for when to XX-year to a loan maturity bonds, have $XXX two low yield years,

than delays As development our our $XX the structural million our the by is commitments in for for next redemption stock the caused plan we buyback, finance are are year funding because as planned. Because over two Incidentally, years. we less next had investments investments expected. NOI has and funded not the in along pandemic we development offs as the will lease our in than be deliveries, originally far lower development for

per buyback have million we shares average stock about of $XXX at an the around share. year-to-date price On a repurchased

with repurchased is share. sales, We the comparable million have match of our stock property NAV which $XXX of pre-COVID per to consensus close to funded $XXX

hospitalizations arbitraging EBITDA. buyback net paused we and and line were we share opportunistic, turn the and the question. funding of allocation. liquidity, reduced a capital ratio EBITDA to we we debt-to-EBITDA opportunistic have approach private also flexibility our selling now to in while the our severe mindful caseloads COVID-XX of strategy. maintaining assets compelling our Accordingly, remains continue of public I orders near-term sheet disciplined the stock strong. discount XX reduces been be balance Even in have impact debt, have will minimal and when In basis to approximately NAV, operator to on the of transacted call between our issued. $X.X context summary credit, be our the leveraged nothing summer adjusted and drawn And the Thank neutral shelter to have impact and you, place back and continue we for While the repurchases needs, total on our in with in billion our on though


the Please [Operator first comes Joseph of Nick question. Citi. proceed line Instructions] Our with question with from your

Nick Joseph

said I'm appreciate statistics October, update the for on they're Thank SXX October I you done you quarter? both taken and wondering you I'm basis all a the at renewal looking account abating. concessions the then the and do gross page and the into operating supplemental If of give on when concessions. third can know of not numbers call. know blended account the concessions operating operating taken for But into I were if

Michael Schall

there, can let one, not let see you if true. an market is I last that note, Number And some the comp. me that more shows you information. improved. year, rents the give So in may we that information. on the fact but give is more some it had decline But you market me I everything rents easier give has

we sure want out and transparency, I a context, not with the the to challenge you know, then it's always whenever context. all information having make giving So more have

board the markets and and stabilization a So the how little well said, bit showing rents year-over-year. across it or shows there's headache are improving. of they're October signs that But a doing improved our have when of actually

off at less less of and moved we we not to to second of as had the And couple QX, what's it's as our XX%. move And reverses the into the for October month. sure roughly a go, actually is now we case, that is XX% started It's happening So want But thinking, XX%. far get as then worse. into across a we things of read into we weeks, reducing people than a than you'll at we were make don't half we're the oh, of number the little as message And are first comp. we a get I get and concessions October as transactions now - getting October, further, over concessions. see want year-over-year right have I we of just the which this concessions in then bit. October,

maintaining So occupancy availability. improving we're doing occupancy maintaining or that low while and while

are the all marketplace. of we're the leasing going definitely at the - not we're When we're the right within new there's incentives that Again, very in was we new market, have well those pieces direction market, more Essex. leases, and don't but So, what renewals we in part on leases look running between break there the X.X% typically is in accurate. at we performing

less there's the - than it's On of answer renewals, less a week. in usually already your Obviously, question, already an Nick? incentive, Does this property. that people is the

Nick Joseph

color get below That year-over-year sounds is And on the very second on where you the some Angela, program. of maybe to wondering, and the share then you helpful, would stock commentary purchasing appreciate the and reasons that for it obviously, I'm repurchase the especially the trend. are restart I you and the question. What just discussed.

for get regardless? would Or paused the it should near-term to expect what we it be you price? Is So more there? aggressive

Angela Kleiman

not going you look we're Nick, I if capital that really manage how Yes, deviate plan. at too we from to think, our allocations, much

And so, key we have make to same really also our debt-to-EBITDA time that the sure commentary at is I the ratio. preserve

And stock reinvest right. the trading, have piece be of are course, there to what the certainly example, price is and EBITDA what are bit we equity proceeds? important we all And if sale piece. is the the for where will more so, the above an the time, opportunities preferred it'll other our the selling? of And what then reduction? of impact little - So same on At what's be a that

things so, And of guess, I all that it's factored in. these

Nick Joseph

Thank you.


your from next Nick the with of line Our Scotiabank. comes proceed question question. Yulico with Please

Sumit Malhotra

Nick. Sumit this with I here is

recently X.X% a scheduled there conference in Just know about of spoke a delinquencies, on And September you I cash delinquencies. earlier are question rents. positive at

provide will delinquencies delinquency could of how mid-XXXX? this any expense with And your into creeping you like on side trending do some utilities side? on are head update likely much an us Also, your peers? So collections you into X.X of how have the

John Burkart

Yeah, okay.

versus from can there are obviously you improving. And trends delinquencies occur. overall, QX some definitely QX, that see are there So, that underlying

delinquencies And residents. happening more collecting along, our what's I've we're a is, good bit majority of with And very which working great, so behavior. prior a little the we are Again, thing. is are good showing all said all great, great in

not delinquency, So more really kind of the current the getting little the on aid, is in delinquency ties improving. Again, are with but pitcher bit that month's a of material overall. is federal uptick. we the a It slight reduction it's

my so move we have we the opening forward, continue And as expectation economy to up.

still comps, negative getting we and Although, have better. they're better job year-over-year

if seasonal actually we so And level, on growth. actually a would comps, seasonal show they had job local

things expectation my to will as here and is are forward. delinquency actually improving So continue out that improve move we

unable As of it. paying it really If rental other pay are people relates running really there's the any to delinquencies all the path to line similar rent not item, who utilities a they're or to paying delinquencies. are yeah not but,

percentage of the So thing. paying percentage, type they're but is a or

path, very So it's that parallel sense. if a makes

Nick Yulico

Nick guys, Hey, Yeah. here.

implied the picture in California and Mike, and potential that in to control are workers selling other about what bigger some a price it other staying can portfolio than states the as the of like tax. about fact rent rate your there, isn't for point of - working you story thing addressing tech investors missing get question cases out sort such now stock being talked what increase you right bigger worries a sounds right remotely, are state maybe Washington, guess, right transaction your all is about lower where rates there said cap I much what wondering I'm And now? biggest low, income is Just in now. are cap question like With is, moving the Essex people the they some that

asset about do well? think sales you how as mean this I So in environment

Michael Schall

And real those private point guess between start would I you the markets Nick, I and public estate is to monetize are real And markets made Yeah, which estate great trying the disconnect and with the the questions. difference. latter direction. Angela for a paused quarter We think it's benefit an And machine operating in in as COVID stated, obvious just bit forward that the we that's when were interesting. increasing. cases

a well. at reverse property buying And we positive and pretty debt well direction in incurring works and as stock differential that issuing think that are arbitrage. or We

is guess, rent I'd So we've I'd mention rent And given down add really are down say home on is of fundamentally current X.X%, that had, them the wrong will tourism, if obvious motion look add job - a the way the dislocation. value, that portion would that still will XX%and the of by reductions And restaurants, LA also Like think are as of at issue. most largely Oakland picture business to industries. focused expected. that I add loss know XX% the in share loss the directly share, an big say there's everyone FFO job that amount come the to But back. with San Francisco to driven But that look example, the and per hotels, or rental to work jobs I the at I we we've you be Southern of for September things revenue I just them. incurred growth. California. we've Those attributable tech seen from company just nothing down NAV this is growth, when a

in are a pretty have company. the ways just employment, to well already tough as add that is unwind I incredibly And outlined to started think positioned. to spot this balance still, getting value But with in itself unwind recover. we that some I say to we do that slowly respect sheet Mr. to need better the so, it's and or would numbers And Burkart itself will

there. see And we so opportunity

your that's how question. So it I guess answers

Nick Yulico

All Mike. right. Thanks,

Michael Schall

Thank you.


proceed line the with your Our next question question. Jeff from of America. Bank with comes of Spector Please

Jeff Spector

I question. home stock, I believe flat rates work was as the it, Thank minus you said, part? the But, concern dig X% Mike, bit be cities number deeper XX% in similar said stated, talk discount. least into is we And you. My stock Nick for only actually one again, from see cap first implying at a you question you last think are to Because, seems the is in could as that a that to your the maybe of XX% more did suburbs. verse, the

you're why about bit home that's to work the little comfortable you can that a not so that So talk going from Essex? just, and impact maybe more just

Michael Schall

everything guess it to great that Thanks prevail. of Yeah, connects for I et presence, physical in are cetera, to the Jeff. to likely hotels, require the the jobs is cetera. hybrid motion make present, I the a restaurants, from that hey many a cities et again, picture thesis industry that that will hard where virtually call. people without joining model the being our customer, would bars, film with And a it's pretty point, is question,

process issue easy enough vibrant don't what of And, And I obviously looking And in debate is, productivity type it's the be serious it's focus compensation part the you're culture There's interesting. effort of in about on, time, out. say, of example, we've there this, continue Zillow to a where focused that is have things, home, lot that how work so, to Netflix does making pretty as actually come say pretty decision, found difficult he we business you do said, the a different says, are senior off guess, what there at and pay The number would time the to and others let's and from actually I part easy work And of on along home. and culture tech from much much see work your the he in the of a a point CEO, to together. decision to remote any other? think issues to are largely it's big and take I out it's community, I for that of issues, And we means problems see less pretty doesn't working there. on with executives And required is better at resolve from found jobs each the significant when that working the mention, positives hard environment, employees, potential think, that work home we're too physically the this how collaboration implementing another have when out. people the perspectives are from job. a that some by not thinking going CEO, see it. probably said, - let's for home do from the CEO But,

be to to some So, collaboration again, will hybrid main thinking vibrancy try and tethering the we together. are those going going point be in probably The is time to have hybrid an the keep culture path office some required model model that the the at forward. to and

so, And position. we been still see ourselves well has pretty

live as within bad don't we'll may somewhere, live certainly see let's thing. city, nearby, driving that not we And distance. say, a someone So, but in potentially a

have fact, properties suburbia. actually in out of our properties in We are most

of housing, we're And going point key so, a other of out we're not there. to that. a positioned be producing way, by there's lot the think for lot we the housing produced is, here And well and not

to earlier, So starting And that areas see suburbia previously already, higher in out. increase we're the as in now dynamic plays and rents reducing that John the said as have they're rents. had already, cities

is decisions different compensating decision be it might have of the renter all from the as always a these months they're issues, market ago, the so, that And does very six can making for and today. made

So, net-net and have markets think these we commutable that's and centers, right throughout properties job again, still and strategy. think locations very we the well the throughout we're we near the positioned

Jeff Spector

hybrid, quantify guess, you you're believe from Is you, mentioned, it's way My advertising, up an No, are postings. Thank you're work or a be companies X job you for you increase track would postings? those follow there not the to able, of that that possible? Are tracking, out to Mike. if they're anywhere. not? able in I I seeing XX

Michael Schall

of of or that out our September And via moving worked the COVID were But they here the Yes, to of doing, the is of of - of work most Because as a cases, tech was return in have surge no from degree, that's at, ultimately have but apple some home top guess, going as companies tech presentation, that back I as the as a from Jeff, maybe connection I going announcement companies phase I the or appears home we gave work of to somewhere will way, another would most that And way are some returned top as a companies, get to do. couple office. else. greater etcetera. But going to office dates either those a back recent gave some work them another, flexibility, for back. if smaller to they they XX reality tech And perspective, looking we all to mean, it's of Microsoft if XX re-openings dates. it's in that from going if to and the there. get there's work the pushed It move even XXX% I - our solidify hard there dates are were pick little and think thing. the be think one bit, are significance long them guess significant. one's back the spaceship is, I office they up pushed it out

a back And off of do So, that which of tracked by it's data the mission. to outlook, don't top that for there the a for this are I job daycare March for survey, actually soon. many years, said, websites, it's I a things. off guess, services have And they're to amount. because our own meant I in in doing companies important that year anytime reason, there and all their they're kinds and And those of there reasonable was take motivation as they, our away think what lot they're we tech so reason. are goes you're peak, their XX including a and it's there,

top move other And XX,XXX starting now I think, back open to is like the XX,XXX recent for around most looks jobs to down March direction. - about the tech companies the somewhere XX,XXX about in XX number. but, in

is to not like better, get it looks that worse. So, starting

Jeff Spector

Thank you. Great.

Michael Schall

you. Thank


comes Hightower question proceed the with Rich your next ISI. Please line with Evercore from question. of Our

Rich Hightower

good up Covered morning lot follow a a prior guys. hey, ground, but Yeah, of thread. Mike, a I out on just guess there maybe

in given think third line Europe. do I you we current renewed take flip the about COVID being posture the and you're feel mean, that I quarter? months the the And on guess, in think in that and globally of seasonality lot then the make As about continue? a side, just of I to a first mean, than in less you second California of material here lockdowns potentially cases if seeing the lowered leasing US how like ahead and in does rising sort would be occurred what impact trends during places volumes, happening similar terms

Michael Schall

etcetera use I that And know work appreciate it. on say, you got Hey, ISI on Evercore it's the the this tracking, all been Rich. Yes, fantastic. has COVID issue we greatly done to what I

So, thanks that. for

And spread it California at muted remark super COVID. in once, really same my significantly. think to comes number it been prepared that two very of And the dealing it the it with curtailed the accomplished said has as things that I case that conservative California. recovery I throughout our when at means time,

what if to. their in in let sit vigilant have very things believe back I tier in we think, it more of and areas we're state order. will spot change, good been be terms California at they pretty I a and pushing I actually I where think than here of we're are Not that today, will that restrictive some have in So, more us now But can't place a happen have into think that is freely. as more the flow open, better economy a the

So, economy, are the we'll and don't you on wasn't significant day that don't would this, this day we on a it looks see well that - take California this basis. But you reopen by if I case. think think I pretty like movement look with positioned. would very And the the to chart SXX, actually see Page Washington

Rich Hightower

give And to or sense. compared of John out year think X.X% then, around or at for this for - of us how sort availability this mentioned some context quick lines? that year-over-year XX-days Yeah, just those clarification, that normal just that along does particular is I makes how time moment, that,

John Burkart

It's of to the quality of good the off no into job, as X.X% you occupancy yeah, years, good in in Essex wants, get that and terrific doggone I and I consistent hard mean, done XX.X. the units and good. occupancy has to this where like season, at lower a the going higher that trying overall. where really now that's demand we decline to season Sure, understand our actually what meet interactive worked like see our very very a in into even mean, spot. leased paying right think last and with we've it can availability market, tenants. there's have availability is And been really, going several a and general team rule, they've October the consumer just and the very into sitting I season up a higher part that's

prepared I year, in mentioned of were my market strong. was QX remarks, the we at very, XX.X, very in last as again, Now,

that's starting we example live. mention, beginnings we how markets. happen. in see in places to I'll and Oakland, Orange, still the I are markets, some we Costa, our have so mentioned good many well, they either of or the Ventura, Diego, this is in headwinds. signs San markets signs And say, Or for Francisco this think And strength But other if San we and before, desirable portfolio context, in see like backfill, of some Contra doing in of stabilization to whole very

really And right it's so price point, to make the the when so consumers when gets value changes. proposition, a

point, literally the but move came vary, pre-COVID, way you from that. X%, fairly or I saying, to now area, what moving that said That's San average proposition me. my COVID, ins to and this starting move Mike commute. commuters, numbers there, the works through people move and jumped. that to like deal. And And you real the and in on actually that at into Oakland they're the And far deal that And just average see way for jumped a into to starting is that October, the a that off super the the are as and Francisco. commuting San looking thing lower so value was And number they're is opening post I tethered, what's XX%, look have places, close the to to is happened. is all now now, all price see through. okay, we're through say and from we're outlying we're X% say would great going January Francisco, Employers September, areas, employers. the Oakland, into a It Antioch about and they're avoid This say this up,

again, most look markets, signs get the others our I in I stability challenged the when get the strength in Francisco I in get I San positive places and certain downtown like So, across the markets. very and Oakland.

Rich Hightower

got Okay, you. Thank it.


proceed Please line question from Markets. Kim the your with of with John BMO next Our comes question. Capital

John Kim

Good morning.

You could provided response some rates some provide if questions. helpful blended commentary you wondering on additional rate to October? the as was in effective Joe's the and the growth I But incentive third granularity Mike, quarter in as far

John Burkart

to at month I look Well, going Right. effective guess I'm that one is X%.

rates, of both this last And be months abating. rent because GE mentality a misleading. net into X% to to honest. a to huge gosh, it our it's number. this think have going effective. saying, have at I And we mean, And down get several so weeks, misleading, that, the rents little I if in at bond quarters, up not bit if spell back reason and there of little get moved think tend this huge I be why that we amount are the one is or be bit off be we can my way a to it of I would amount three would doing and to that did I'm oh calculation today about gone look almost adds lease I go would concessions But three those

As has used and as to occupancy tool rather as into market the increase can come go for out much in lesser years, and as said, them We've to concessions a extent rapidly. leasing renewals. incentives, Mike

I'd to our And worked. a where concessions preference We add? going okay, increase go now the And They say, I pretty what's rents June. they and at And this they're it in The them all street lost you'll abating, to lot. rents I if market the in But I occupancy and think back. really increasing. at really say - back way dramatically, coupon we're to way get you concessions, best that's my in story. look is so them rents to the don't came sell bigger pulling or effective that's in And way use market with are a the case think look they or that's into and big say, then net have think on it. the rents,

John Kim

rent? or the XX-month Should XX the adding to free rent In lease, period is words, only? be inclusive we the it other XX-month is or XX-month lease the free of

John Burkart

I you adjustment. try it's X%. just get say make and amount net month, typically It's as effective okay, take the again, to a if And yes, that And said, it's you to XX-month you'd concession if lease.

look But at So I to in that's there. what's get I just simplistic now. again, the right happening that's the think the mean, best marketplace way way to don't

John Kim

between is second the could your or have Okay, breakdown, on my is if typical I there categorize portfolio? your what percentage wondering is I question portfolio and of suburban a if more suburban you the suburban garden style transit difference suburban is two? portfolio. do was oriented the And versus, guess, your performance populated you in densely

John Burkart

transit. that. right anything will Well. don't But now. what's people taking is driving performance, details relates It's have not with the as tell transit basically really to the of breakdown a it you I the oriented lot of aren't I

were would opting the is ways, not it's be bid road. the But the how caltrain. units sense. per that walk-ability typically the bar they're units the not lower square the that used what different If And as to most but up, is, foot most. mentioned other walk-ability people see on higher do the the have you cars the previously, that that higher side, relates walk-ability And that commuting, this they're are see that much to many we price So square one correlation look at per situation, the they're on negatively makes I've on or benefited drive. the if dollars seen and are on we in in that impacted the We've lower of again rents. foot they're to if also are getting

Michael Schall

our shows internet, Page what chart the is describes on that a on there September exactly Scores presentation. that's rents In of Mike. is This that John. John actually Walk - there's hey, presentation the XX you, a is in change which And asking by

a hopefully you have that'll give And questions, us So any help. call. up if follow

John Kim

thank you. Very helpful,

John Burkart

Thank you.


of proceed question with comes Hill question. from Our your Please Rich line Morgan next the with Stanley.

Rich Hill

Hey, have Because I this taking guys. question take we I on a my call. think different call. for a questioning little you. the Thanks some of for Hey bit have maybe John, on

market understands is market I surprised to secrets in XQ think It's that are revenue the same think now. I that worst one apartments is and worse under store frankly, pressure. get the going of the in market don't kept And XQ. right that

Occupancies I October, showed leasing for last seems particularly less night, to the improved, right. bad. bad. think were what I And is about looking think if what reported spreads for be less markets you you that,

think come some And as you were so, making demand I comments important rents really down. about

leasing you the seen have Do - occupancy are just have attract see Because and So start think improving going less really are that And guess, demand? really to to less think one that bad to that to here? reaccelerate I just we need really from we bottom? rents to questions bad, enough incremental really simple come my spreads. stable market theory, I in are the down

So a if real think I positive. there, that's we're

John Burkart

cook our and stability of occupancy actually do for have we is, in a portions third large future. But, out can rents, me of that don't course to that you this I'm the portfolio of we obviously, I wish in is signs positive. What and portfolio. ask Yeah, know strength XXXX trying point the of of could June moving increasing

we're the catch We market, others play in now. are And not are that some up trying right the there's in market participant a to it.

low sign. good. usually we is, one I QX QX for point. from be There seasonally, say have what's no are improved recognizing that see going comment QX. volatility July, hard amount we are Francisco which that was of then trying and But up, Oakland brought your we going in the just that tremendous in would to QX things everything super forward. there's it feeling It's outlying it So, interested. for because that a with proposition that A moving are out see to to has starting activity, good find saw value be the as lot and to consumers market, low very a certainly to the San market areas I are places sign. a are June was, of pieces COVID is on that it the in comment, that and commuters I we're where To there, found works And in call else, people and turns leading from but I now them. me knows where what volatility points, And would be believe going out

markets a we're me certainly, strength the four counties some sequential that So, Those tough mentioned. is in heartburn. But good see and in improve starting yes, are gives word acceleration still other thing. that I areas, those the to stability,

it quarter, did better feel let's it put So, way. much overall, than last I that

Michael Schall

Hey Rich, is Mike. this

Rich Hill

Yeah, Mike. ahead go

Michael Schall

better It's that it's the our things of that this feel not understanding. that. completely or rapidly, uncertainty year. add just talked john normally guidance change year we and giving so the the purview time of COVID in me is, about can are opening we for for because additional to - largely script. of about don't said, year, good of or that unknowns one And world this for just, the it's and we let outside as the Yeah, worse the pretty And next item

focused SX normal if piece. they're can to many regret rate thing we're rental just and hold points, for Oakland And on hold to in on on monthly with, average, and jobs our Page SXX down it's just crisis, I giving than the next loss, XX unknowns. again rate of down And we One XX% Page but do year. X.X% to is amazing rate. basis XX% we and that an not our important can't occupancy, we're on So, worse much we we job too and financial trying average guidance down is we're Francisco, that supplement, that think so San hold trying trying while in still have the with or

trying do. we So And that's both. we're what remain to

Rich Hill

the Yeah, that's get just valuations now, you see really market like, were are guys. back given to would right in XQ to I to you, reiterate don't 'XX. think And where where you I needs helpful,

knife feels that emerging, stability a to not I maybe And why there's think and less bad. if saying, anymore, I was some see catching we're like think like needs the it that's market way encouraging. of just falling a October sounds positive. long a That's

So, the work Good look forward to future updates, guys. quarter. on

John Burkart

you. it. Thank Appreciate


Our next with question Advisors. comes proceed your Pawlowski Please from line of Green question. Street with John

John Pawlowski


one on your of here, your quick kind coming for do larger question the some competitors you of the in rent of portfolio, a occupancy resets, just slide little So outside side your John, as private sub catch as markets play next up expect me several in ripple through occupancy quarters? and to

John Burkart

slide. don't, I it wouldn't say I expect that I to

I think the team is doing a phenomenal job.

data all We hub, are have proprietary together. and very we data aggressive getting the data, we pull

with way it meetings. team And just is pricing meetings, and the leadership have it. amazing all through We daily an strategy

market. the meeting we're so, And

So, get any we just that revenue and we earn know not years that does proud a just you the at anywhere. vacant vacant, unit it for that's doesn't laughed concept and

So we and XX-month to doing meet are market and the it, we in typically stay try leases understand meet it and occupied.

So, third volatility couple And there But occupancy for brought want I expect try saying up, people happening to surprised turnover, to because I to XQ will impact just the and happening and to occupancy. just also of say lot. probably starts north the do. lost occupancy maintain are start as now best to a to I'd to would and here by maintaining that trying market There that's get of going turnover. and then, whole just right they're next has what - XX.X struggling reducing vendors thinks strategy. in because And high what are and I don't people which the be is the this figure see different higher we with out to XQ we there the continue that away. the the quarter, XQ players nature XX XX now. be on that an of I And the there normally is headlines that don't be to see more declining into occupancy think really was not and I is expect individual some is quarters. from of but There's I

John Pawlowski

Okay. One where follow-up there, the think are you have you've any markets winter? them in California back Northern taken concessions you'll to on and off into put

John Burkart

looking this in going basis and where where now another, right mean, on use mean, need happening. and I around. to I we're what I'm again, market or expect out meeting not and No. weakness - what's right. We're volatility. we them. But I out it's expecting regular have huge them a figure floats is, to figure it the obvious we But spot one

position extent, make that I we'll adjustments maintain like good more to up. it's so by to trying a But mean this yeah, throughout situation. And as then necessary things pricing is that a whack pop if what and mole,

Michael Schall

is John, This quick comment. Hey, Mike. one

and But business what the resume QX follow by is nothing happens budgets until fourth Generally, activity. affected in COVID. new in hiring to plans, companies in order wait regain said. to also QX, Just with when quick which hiring because quarter, great up have John just they generally, one

So with worlds. both of of up you worst the end sort

hiring, of with up end deliveries the course, less coming. and You supply keep

quarter, issues the has past. been is that pandemic given in is dynamic definitely this in the mind keep greater So than probably related it that

the before think New of a I great we into really have in. Year what going So, we really, need sense get going to be we're to direction

John Pawlowski

Got it. Thank you.


Our KeyBanc. next question. of the your proceed question with line Austin with from Please Wurschmidt comes

Austin Wurschmidt

thank everybody, Hey question. you the taking for

of are today just curious, effective to the catch you your extent rents? you where aggressive in-place others the more kind concessions over summer that market versus were guys rents up. peg First, playing given with Curious

John Burkart

like delays Our at? place in where last rents? we effective Well, mean do you are

Austin Wurschmidt

and you below to so coming to further, already looking if to extent yeah you, far market you soften So, do how your cut you to versus having you've the market the today, take into concessions, rents things in further put or at at some effective is cushion the ultimately? extent account are

John Burkart

of have lines those. really we've from backed been concessions, and most cuts the again, of our along Sure, away

down over our 'XX. As are in QX XXXX rents we about market QX noted, X.X%

seen there, adjustments whole concessions, incentives, So market, less. by is those consumer greater hanging obviously continued we've to market meet backed into over it the the and has we where time, the away. with as availability. a for made And And and being is they're to looking the maintain more backed the But more lines what pretty markets fall, leasing we San that occupancy varies pricing and we're concessions things over consumer at. other structure need general then intense. the to the for been But a were to this certainly down, is able got much away, the we've rule recent as in as our we've along continue low summer, with Francisco really

if dropped our now, already So, we've by we'll market right adjust, but necessary, say X.X%. rents

Austin Wurschmidt

number. yeah, a looking to Okay, type just I for guess I'm sort of loss generally lease

to loss full today, your You're and more lease?

John Burkart

it sorry. to gain that down, to loss look X.X% to is if lease lease Yeah, at our lease. Yeah, like way. we okay. Yeah upside Gain

Austin Wurschmidt

to got it, lease, okay. Got it. Gain

John Burkart

It's like have to lease. we to been lastly, use I not have just saying mean that, gain

Austin Wurschmidt


of then normal your over things work and you from think comments kind you on time, Okay. get more enough. home And more back are Fair guys to in suburban.

out e-services cores, longer, had as concerns get Perhaps up that a there. moved so to the residents to do Is restrictions back lose to concessions as things lifted, closer you return there want back remain risk and back but urban to the begin are suburban virus, So the running. locations, elevated urban cores that move around more ultimately little and normalcy? to a offices take their into

Michael Schall

other doubling some of Mike. from minute October he Francisco California is And this was previous movement Oakland markets into a to Austin, Northern San when about of talking ago, alluded the John Yeah, and numbers. the this back

are they a suburban cities, rents So as areas, suburban you're of the more continues in. value differential to increased, their there to it's is the long the have see cities largely, expand movement. that in areas going moving a again, back which people differentials. more to discounted price the recently And areas. now as price the and much there actually between so is because suburban And that compared is relative definitely We've

for find this marketplace. units the rent So the markets normal we of think that the and operation just the in the sells is compensating

And markets so, very it of most people urban in reality much choice. the markets, is that versus consumer the relationship doing don't focus on the affects what rents are suburban

choosing in cities the people price And lower point. so to now at more are live a

Austin Wurschmidt

Okay. That makes sense.

for thoughts. thanks the Okay,


from Sandler. question line comes Please Daniel Piper question. Santos with with your next the Our proceed of

Daniel Santos

to if you my considered of comment, faces in ones operation And I questions Hey, or long-term? taking wondering two or more and could savings sheet Most for the all outside specifically issues California, quick you balance future near-term any my so of just investing you both on if that of the markets sorry, of cost face not covered comment California California could revenue then decline. been question. look or on this already, just if second, - was for the you sort further in you've morning, have thanks could wondering good answered continued for I me. just whether was given initiatives

Michael Schall

the are COVID. Yes, I this - costs say increased is have Mike. pressure on in would Actually,

we relatively imagine, larger. now small it's collection department, can much had a you As

price is imagine, selling more strategy and complicated can you now. As changing much and

technology are the XXX that deployment more noted some has one business as a allowed COVID. And has move things into business, overtime. prepared types in that my So technology technology, presentation, said of involves basis as we strongly I will margin complicated. operating of the said But technology us probably in - terms I'd that accepted - lead to of points improvement And happening. are again given actually it's remarks to to And XXX the say our September different various of that pretty our in consumer them there in bright prefers where technologies.

And what so And promise was sorry, there the for part of is question? definitely your cost. there reduced second I'm

Daniel Santos

could in or you specifically the looking comment markets whether outside of was California, wondering, if on I considered over-hang? you more just investing just not all

Michael Schall

really that advocating do can Yeah. because pretty a it. doing to for it spend If is housing do, going what lot find up, overall, then some rents good few come this cycle rents. is have find time what growing going businesses to think and we're very The you constraints activated, drives that it's that It rents, higher and in we're We very to markets. that that, to we combination policies to virtual hard of money going believe something which be allow rapidly, in to will we wages of California that forms of are supply and here. and push wages sense we're vibrant makes and

continue for the do we are similar to in quite We West any West planning just think activities a one as to adding in look company. that them the obviously, So, interested markets it, Coast. interested involved of at good other at we're strategic look in we're and are have But as the process growing our value Coast. we thing, that don't shareholders

And compelled so, look take if we would be hard see the at right it. to a we of set conditions,

Daniel Santos

Thank Got you. it.


your proceed of line Our question with Capital Security. comes Malkin One from with Neil Please the question. next

Neil Malkin

staying you the giving morning. Good time. me Thanks, guys. Appreciate Thanks on. for

Can was with side, time is that, I assets easy what that. on like? the And be are a do would I've of originated debt. you stabilized. that seen that. talk I agency market finance thought looks the First like one in equity continue first just about one kind you preferred you was active to couple, the stabilized to you that

your new or talk that maybe about of part just trends a you opportunities kind what you it, maybe If that's in seeing you're of overall, see business?

Adam Berry

Neil this Adam. is Sure,

assets. challenging we've active definitely market sponsors. for stabilized have more, But definitely some seen out been is So, seen, for in there we're there underwriting and ample debt very still the has more has

you the more are couple opportunities stabilized we and seeing the coming side. down. pipeline quarter, funded probably we more saw a more And that one just the this on So, and in

Neil Malkin

looks of from their want Okay, putting is for great. data. mouth maybe Seattle, for and where growing office Appreciate sublease available is question California. issues, again, gone Northern as looked but I X.X% Amazon Mike, money that. about And footage their you're some California, Northern people square then Google has talking the I at about guess, the coastal in talked X% just, subleasing like It in kind back, space. to I've go to like next

regional companies adjust of like going to Facebook remote each And look being workforce their location. said, on You at have who not and about follow XX% usually, around location, companies talked other's these compensation based Google moves. they're like then, Reddit during

So, I from the in driving least at partially markets the you the tech large main companies? isn't given areas around or forces West guess, do framework how at in impaired, that think those those least Coast those

Michael Schall

I'm company, lease Well because I what there's Definitely, of an not that guess glad space you're there. I'm the say, saying. I office this is with plenty out moment would agree I

obviously, home pretty because, COVID it wait that in in mandatory happens, from choice the guess noted like the and should time some vacancy I'd I as of have show Although, I rates to life's post a this I quarter, thing, on don't out. work that, these period. that And to still a now, again, as a increases cautious to but thing huge versus rapidly. a be what script, seems think the And, say quarter be but it right it's take to things last things are time see we take play now, that opposed will changing sort right much

vibrancy some benefits it. place will think and that forced upon there's being forward. because a we And model I that what adopt believe us. going hybrid change are to in a the we'll model of in definitely think hyper same the we this the I'm as from at company all And, take whist via just of focused culture on time, company to in maintain how fact, format. type is is. see you critically don't But here and exclusively us. the I that's well, important room as we that work So, as home of the there that are, everyone and lot Again, just think we

with from will be on I the there's be happen to But don't think in successful doubt and some need that going issues and it there So, again, road. what's exactly these home lot to know bumps for the be good work of to I no model, reason things. a resolved

remain as markets. in but we'll And, rent will we're shape. into not major we may good within well, long metros, think. do the suburban out the in And continue Francisco, pretty get it we growth I employees get I So, think those may in the to not San as that they

Neil Malkin

feedback. Thank you. the appreciate I


the proceed question. Calmes Please and from question with next with Zelman your line of Alexander Our Associates. comes

Alex Calmes

thank you taking my question. Hi, for

there's XX% about opening Just I off private my going in are a discount we from back and arms you wrap remarks, pre-COVID kind public think the about where last around significant think to If X% year. drop volumes the that But a to pricing. of there's today, in your values. said if

if hypothetical were would right discount now? imply that were rate, if running a a So, we at we normal deeper there

Adam Berry

Hey, Alexander, is Adam. this

talking So markets. to I earlier core on above be think, to Mike's X% the assets in seen suburban valuations script, urban pre-COVID the more levels. that about was comment he was discount or XX% at We've actually

said, Cap XA sold that sold pricing. or that being definitely at as above what at say on in And above at low-Xs. example, the an this pre-COVID there pricing, off of pre-COVID cap been in But met, and is. market pre-COVID that being value. that potential right. and we has potential historically talking Glendale there about just week, concessions the that X%, rents out or the You're is buyers constantly our kind the are we're market was enough on you're of And to pre-COVID a it deal volume dispositions. just on in I'd That about

the of flows still what we're discount yeah, that still XX% think X% despite to of we core pretty lack and the through confident volume. on markets, So mentioned spread kind that Mike that

Alex Calmes

of those a even on it. assets? it premium scarcity Got sort Would you call

Adam Berry

potential. that definitely is There Yes.

Alex Calmes

Got be? administration. be do would would gauge in what you in factor how the plans you we're thinks seeing that. tax of the - big he And you. win, to If it. a Are he just about I just exchanges transaction some just eliminating of Thank that want to percentage know in market? were Biden XX:XX California and that

Michael Schall

income is is have or Mike. to tell. not have year of good in given of terms plenty which issue. lower a This REIT sell and properties It's revenue, dividend some we taxable mean, room a hard thing, to not this I

already So, some Prop it's from properties of selling XX, they're year. our vary a but it year to in will given headwind they're the California already And - as well. already

So, the hypothetical question we to of that circumstances what it more hard going That's depends see it's a tell. on and forward.

answer. So one it's to a difficult

Alex Calmes

thank for color. the Okay, you


Baird. the Our Please Amanda next of question your question. Sweitzer comes from with line proceed Robert with W.

Amanda Sweitzer

thanks. Great,

among look Just context had for have consumers those to? you referring of me a you've you including greater here, super you're just as And quick one you to those from raise past those in intravenously quality change to values when downturn, then, a eventually see [ph] seen more value do rent? commuters in credit do tenant be turnover

John Burkart


a not but So going to then situation, a as It's where have and seen situation as don't, if a far the have to and no, you're tenant you not you renter. new job, decline become able it's going if we quality, there. a terrible continue you're rent forward, credit you maintain to any

declines any seen there. haven't we So

personally they advantage person they Essex, wanted client. to very that from nice turnover, had sometimes we they're a had is value their can changes. with. the almost And, and yeah, pricing As decision. that's of into a the answer it commute property where type that resident from see the are with to making think started and And crisis, were transferred funny our between up really the and within then do Essex. moved they the one in back Seattle of that did outer after it's properties pricing as moved in an that up, But is, picked goes I that downtown. stay is relates And And yeah, making an story to they they financial what market They of on. proposition situation, of everything again, Essex take this we that there last

the was was Of demand increasing that's rents backdrop because up, the course, there the growing, in Seattle because economy went of was jobs.

fact rising that overall economic picture. rent going a really it And was then. to out, moves person that, so, It the the impact

Amanda Sweitzer

Thanks. Make sense.

John Burkart



from next Haendel of line question the St. Our comes

Juste with Please proceed with Mizuho. question. your

Haendel St. Juste

there. out Yes, good morning

John Burkart

Hey Haendel.

Haendel St. Juste

Good morning.

curious quarters in if what what this I'm second drove revenue that as should $XX this, increase guess discuss million but me for and term you level, question be And plan to sorry did builds And if non-residential I I missed well. from behind million? it? up that $X First we forecasting guys I'm near on was

Angela Kleiman

levels… a it's Hey I Haendel, Angela. increase. see $XX on million Sure, I property have the

Haendel St. Juste

from quarter, not it's $X this million. sequentially to million $XX $XX It's million,

Angela Kleiman

at a know SX look million to XX, growth $X.X in I'll back when you have what million. you third to quarter, As quarter to quarter, get to because our $X to from to I quarter second from

[indiscernible] So, it's one that is being

John Burkart

Where are you looking?

Angela Kleiman

Yeah, where looking? you are

Haendel St. Juste

looking versus second I'm one SX, the million line $XX.X - Looking $XX.X in the second, items other non-residential quarter quarter at on third Page sorry of million.

Angela Kleiman


Haendel St. Juste

And was curious bottom you certainly up a readily just up to was but had if Looking going follow available, take more can then… that line, something digging? if it's bit I

Angela Kleiman

line is And straight it's No, - rent. that

think at rent. line where that's you're I looking

Haendel St. Juste

Non-residential other other up guess like Mike, - income look doesn't following I so, really Right, up. do follow on event. million. any $XX.XXX maybe the We'll

Angela Kleiman

rental on on straight it's and commercial. - Yeah, commercial

But what that's is. that's think I it up But follow we'll with what that is. you. I think

Haendel St. Juste

of are fair following markets, about few question So, to stock disposition past years. Okay, peers to Daniel's and few buybacks? new be guess on maybe curious that's hesitant what to of over list then quarters, this I'm for seems I capital how question up because what you the enough. curious, hypothetical the talked like new that could, specifically? A on we've use proceeds mentioned about source Salt for Lake given your entering your ranks the markets a know market here I'm a more City

Michael Schall

one strong market liquidity perspective, want in the to enough from and an a smaller Boise another cities metros; those our create to Yeah good it's enough example. bunch in local you Actually are from well. would a each as They're there's But question. markets. put a we there of that's in the I market. good see Haendel, issues buyers investment of perspective, of that can that sellers be And guess, others category. pretty

a it it's tend prices. than an pretty increases should those starting to point markets you as cycle, as very single be more get with I The because other is single home think soon family to to buy to about issue to we're hit is inexpensive, get a the rent relatively apartment, see careful in attractive homes. home this, this hard. And family And in level rapid where, everyone

boundary made of investments we their urban how So, for before. were we this is growth that sale to this, of in Portland why because it's surrounded the growth based on housing, city and which good inexpensive production example types all in broadly another apartments Choice that the an homes supply to we've made include a housing to than time Boise. Portland, the XX,XXX exited But lesson a much constraints rental And they City city because upon urban of some for that production. in learned the of price, expanded the boundary metro overall of well Salt that actually, amount that in once Portland measure allow attractive housing as single Housing Portland, we available family We were although as relatively bigger Lake very consumers. are our of the less limited

So, those very definitely them. I a markets are we with rapidly. definitely There's risk growing hear be like but higher to money that, there's made, associated

Haendel St. Juste

fled be part as have search thanks final in portfolio? Yeah, emerging the more power pricing they the given Mike. or the renters nimble are guys And split in and that space, the that, for on just guess that tend you more I'm not people of here, to on - studio city, side any certainly apartments? to question to the I or from for incremental you younger seeing demand one how Can what for curious Thanks. demand but curious

John Burkart

connects word the it occupancy. is bedroom, ties than now dice this clearly, the bottom. were to and relates connected but to marketplace higher have and at use what see demand Valley back studios They and usually foot. private within part ways, square the where more those as bedrooms COVID attach say say, than also two one in three is wouldn't there's that types demand slice see connected just we or outdoor see private again, where the price the It Generally, want also power than studios type, at my to and people where space, this things. to per lower pricing turnover Silicon of preference issues, unit look have look the comments space. bedrooms I to it's space, studio different Well, limited was we Basically when consultants And we studios. more and outdoor and numerous what have lower to some want of we studies,

no that types, if other than there's answers question. studios question impacted more your yeah So, unit the are that

Haendel St. Juste

that any we're there's proven second the the piece the all certainly any when if challenged move curious, also portfolio? incremental see idea but on of some start in Certainly, to more been looking that you at for curious it's group,

John Burkart

Fair little but whether better, everything units, best figure bit to whether to we discount enough. it we're be as out be or those market We're office, a doing way in doing they different can second the a also prices.

stopped. I working say market There more flattened would because That those. we're So, a to would a decline a And and noted I out, studio, factors decline the the there's has to think say occurred yes, that incremental spring again, was there's very figure picture, a what that in other I out how But involved. little bit aggressively little is, context, stopped, balanced occupancy. demand. it's we're on now improving they it In bit.

Haendel St. Juste

guys. you, Thank enough. Fair


to questions. no I'd the hand closing are like back to call further remarks. for There management

Michael Schall

you, November. a for Very safe Hopefully, call meet to of the us. out there. Good week And good. chance in you thank upcoming Stay everyone you day Thank joining for with day. today. Thanks we'll have operator. at joining the many


teleconference. your participation. Thank this you gentlemen, and conclude Ladies does for today's

You time. this lines may have wonderful day. disconnect And your a at